FINRA Regulatory Updates

What Changed

The primary regulatory modification addresses a single-day exception to standard options exercise procedures: CEA Cut-Off Time Acceleration: The normal 5:30 p.m. ET deadline for submitting Contrary Exercise Advice was compressed to 10:00 a.m. ET on January 9, 2025. Exercise Instruction Acceptance Window: Members could not accept exercise instructions for either customer or non-customer accounts after 10:00 a.m. ET on that date. OCC Processing Unchanged: The Options Clearing Corporation's proc

What You Need To Do

• *Update Internal Procedures
• *System Configuration
• *Staff Communication
• *Customer Notification
• *Submission Coordination

Key Dates

References

• [1] finra.org
• [2] finra.org
• [3] finra.org
• [4] finra.org
• [5] finra.org
• [6] finra.org
• [7] finra.org
• [8] sec.gov

What Changed

The Section 31 fee rate drops from $27.80 per million dollars to $0.00 per million dollars for covered securities transactions on exchanges and over-the-counter markets, applicable to trade dates (charge dates) of May 14, 2025, or later.[https://www.finra.org/rules-guidance/notices/information-notice-20250424] The assessment on security futures transactions remains unchanged at $0.0042 per round turn transaction.[https://www.finra.org/rules-guidance/notices/information-notice-20250424] FINRA wil

What You Need To Do

• Update internal billing, invoicing, and financial reporting systems to reflect the $0
• Review and adjust any automated fee calculations or client pass-through mechanisms for transactions on or after the effective date
• Contact FINRA's Amanda Rath for finance questions ((240) 386-6637) or SEC's Robert McNamee/Faisal Sheikh for legal/interpretive issues; monitor SEC website for updates
• Test systems for security futures (unchanged rate) and confirm no inadvertent charging of Section 31 fees post-effective date

Key Dates

References

• [1] ez-xbrl.com
• [2] cooleypubco.com
• [3] sec.gov
• [4] finra.org
• [5] nelsonmullins.com
• [6] infomemo.theocc.com
• [7] sec.gov
• [8] federalregister.gov

What Changed

Termination of Fee 2025-1: No longer applied to transactions after June 30, 2025, per FINRA Rule 6897(b)(1)(D), which requires notice upon replacement by a subsequent fee. Implementation of Fee 2025-2: New fee recovers FINRA's ~$7.27 million share of budgeted CAT costs for July 1–December 31, 2025; monthly invoicing begins for July 2025 transactions. Distinction from CAT LLC fees: Unrelated to "CAT Fee 2025-1" (assessed by CAT LLC, rate $0.000022 per transaction, remains in effect). #

What You Need To Do

• Verify internal systems stop applying Fee 2025-1 post-June 30, 2025, and prepare for Fee 2025-2 invoicing starting July transactions
• Review and pay final Fee 2025-1 invoice (due August 2025) per Rule 6897(b)(2)
• Update budgeting/forecasting models for Fee 2025-2 (covers H2 2025 CAT costs); monitor FINRA notices for rate details via SR-FINRA-2025-010
• Contact Amanda Rath ((240) 386-6637) or Faisal Sheikh ((202) 728-8379) for questions
• Distinguish FINRA fees from CAT LLC fees to avoid double-counting in financial controls

Key Dates

References

• [1] finra.org
• [2] finra.org
• [3] federalregister.gov
• [4] sec.gov
• [5] finra.org
• [6] findknowdo.com
• [7] catnmsplan.com
• [8] compliance-risk.com

What Changed

Effective January 1, 2023, amendments to FINRA Rule 1240 mandate annual completion of both Regulatory Element and Firm Element for all registered persons, per CE Council recommendations.[https://www.finra.org/rules-guidance/notices/information-notice-20250814] Launched July 1, 2024, the Financial Learning Experience (FLEX) serves as an optional centralized catalog for Firm Element e-learning courses to support written training plans.[https://www.finra.org/rules-guidance/notices/information-notic

What You Need To Do

• Registered persons
• Verify FinPro access/recovery; contact FINRA Testing and Continuing Education Department for questions

Key Dates

References

• [1] stcusa.com
• [2] nasaa.org
• [3] finra.org
• [4] questce.com
• [5] finra.org
• [6] finra.org

What Changed

Removal of Settle Prep Day: NSCC Rule 50 amended to eliminate the settlement preparation stage from ACATS, effective October 17, 2025, streamlining the process for all securities transfers.[original notice] Mutual Fund/Options Synchronization: Eliminates the extra day for processing mutual funds and options via Fund/SERV, aligning their settlement with other assets; also removes the second day of Fund/SERV pending acknowledgment.[original notice] Overall Timeline Reduction: Full ACATS transfers

What You Need To Do

• Operational Readiness
• Exception Handling
• System Updates
• Contact FINRA/NSCC

Key Dates

References

• [1] ftfnews.com
• [2] finra.org
• [3] advisorfinder.com
• [4] finra.org
• [5] sec.gov
• [6] finra.org
• [7] finra.org
• [8] sec.gov

What Changed

No new regulatory requirements or rule amendments; this is guidance providing a pre-calculated Filing Schedule for 2026 to prevent errors in the REX system. It emphasizes using schedule dates around holidays when exchanges or banks close, and confirms fixed SEA Rule 15c3-3 deadlines (e.g., 30th/45th calendar days post-settlement, 10th business day for (m) possession/control, regardless of foreign settlement cycles). #

What You Need To Do

• Access and reference the 2026 Filing Schedule on FINRA's website (via https://www
• Input schedule-specific dates for extensions, particularly around 2026 holidays when exchanges/banks close, to avoid automatic denials
• File SEA Rule 15c3-3 extensions on exact due dates listed above, even for foreign-traded securities
• Contact Theresa Reynolds (646-315-8567 or email) for questions
• Update internal compliance calendars, training, and systems to integrate the schedule

Key Dates

References

• [1] finra.org
• [2] finra.org
• [3] finra.org
• [4] finra.org
• [5] finra.org
• [6] finra.org
• [7] finra.org
• [8] federalregister.gov

What Changed

Electronic Filing Mandates: All specified filings must be submitted electronically via FINRA Gateway; SEC no longer accepts paper Annual Reports, requiring EDGAR PDF submissions under amended SEA Rule 17a-5(d)(6)(i). https://www.finra.org/rules-guidance/notices/information-notice-20251110 SEC Interactive Data Compliance Dates: Annual reports and supplements must be filed as Interactive Data Files per Rule 405 of Regulation S-T; firms with net capital ≥$250,000 (as of Dec 31, 2025) comply for fi

What You Need To Do

• Submit all filings electronically via FINRA Gateway by 11:59 p
• For 30-day extension
• Affirm de minimis exemptions in eFOCUS for OBS/SIS/SLS where applicable
• Prepare for Interactive Data
• Contact firm's Risk Monitoring Analyst for questions; review eFOCUS guidance and SIPC site

Key Dates

References

• [1] finra.org
• [2] finra.org
• [3] finra.org
• [4] finra.org
• [5] finra.org
• [6] ria-compliance-consultants.com
• [7] fairviewinvest.com
• [8] thinkadvisor.com

What Changed

Electronic Filing Mandate: SEC no longer accepts paper submissions of annual reports (Form X-17A-5 Part III), supplemental reports under SEA Rule 17a-5(k), and Form 17-H; all must be filed on EDGAR in PDF format.[https://www.finra.org/rules-guidance/notices/information-notice-20251114] Electronic Signatures Permitted: Allowed for all SEA Rule 17a-5 reports (including annual and FOCUS Reports) via specified processes, e.g., Adobe Acrobat digitally signed certificates with document locking; FOCUS

What You Need To Do

• Implement electronic signature processes (e
• Retain signed Oath or Affirmation for 6 years per SEA Rule 17a-4 (no notarization)
• Review FINRA eFOCUS page for FOCUS amendments; prepare for interactive data filings per net capital tier (test systems in advance)
• Direct questions to firm's Risk Monitoring Analyst

Key Dates

References

• [1] quadrantregulatory.com
• [2] finra.org
• [3] pkfod.com
• [4] finra.org
• [5] quadrantregulatory.com
• [6] finra.org
• [7] capmktsreg.org

What Changed

National options exchanges will close at 1:00 p.m. ET on November 28, 2025, triggering a modified exercise cut-off under FINRA Rule 2360(b)(23)(A)(viii): deadline is 1 hour 30 minutes after close (i.e., 2:30 p.m. ET), overriding the standard 5:30 p.m. ET. Firms may set earlier internal deadlines for accepting exercise instructions but cannot accept any after 2:30 p.m. ET per FINRA Rule 2360(b)(23)(A)(vi). Reiterates standard procedures: in-the-money options auto-exercise under OCC Rule 805 (Exer

What You Need To Do

• Update client communications
• Configure systems and procedures
• Train staff
• Monitor and record
• Contact FINRA contacts (James Turnbull or Matthew Vitek) for clarification

Key Dates

References

• [1] finra.org
• [2] davispolk.com
• [3] finra.org
• [4] gtlaw.com
• [5] mayerbrown.com
• [6] finra.org
• [7] sec.gov
• [8] carltonfields.com